[BC] HD Radio at CES

[Ernie Belanger]

 I noted from reports coming out of the CES that there are a number of new radios which will feature multi cast reception capability.

That's good 

What's bad is that they are all still at $300 plus.

At this rate the it will be 15 years before there are enough radios in the field to justify the cost of ramping up HD.

That is unless you believe the latest prognostication from Kagan Media who claims revenue from HD radio ad sales could (note that word...COULD) be over $805 Million inthe next three years.
WOW.. I wish we could all be smoking some of the stuff that analyst is smoking.  The numbers don't jive. In three years we'll be lucky to see 100K radios in the field.

And don't expect the commitment of the HD Consortium to spend $200Mil pushing HD to impact that much. It turns out that it is all radio promotion commitment. Not real money to be spend on multimedia advertising. Just radio promoting itself: (see below.*

The irony is that the latest Advertising Age Magazine  (1/2/2006) shows that in all age groups from 18-55+ when the question is asked "what media influences your purchase of electronics?"  Radio is not listed in the top 5 influencers.

What is needed is $200MIL to be spend by broadcasters on a slick TV, Print, Internet and Radio campaign pushing HD radio. If HD is to compete with Satellite radio, Ipods etc, broadcasters need to use the pages from their (satellite Radio & Apple's) advertising and promotional playbooks. 

Radio's own ad execs are trained to advise clients that they need a mix of media to sell product. Radio being a part of that mix .. maybe they should take heed of their own advice

Ernie

*FROM RADIO WORLD ON LINE: Ibiquity President/CEO Robert Struble is pumped about IBOC at CES. He told RW Online that new HD-R product is being shown in 16 booths at the show. And the recently announced HD Radio Alliance is a tremendous step forward for the rollout, he said. 

"When they spend that $200 million, HD Radio will be THE largest radio advertiser on AM and FM," he said, referring to the value of ad time devoted by the major broadcast groups to the HD-R promotion effort.